Purchasing Power Parity Does Not Hold in the Short to Medium

question 68

Multiple Choice

Purchasing power parity does not hold in the short to medium run because

• A)exports don't equal imports.
• B)exchange rates fluctuate too much.
• C)some goods aren't internationally traded.
• D)most business cycles are caused by shocks to aggregate demand.

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Definitions:

Response Class

A group of behaviors that serve the same function or produce the same outcome, even though they may look different.

Teacher's Attention

The focus or notice that a teacher gives to their students, which can serve as a form of reinforcement in the classroom.

Behaviors

Actions or reactions of an individual in response to external or internal stimuli, often studied in psychology to understand the underlying factors influencing human actions.

Deprivation

A period of time prior to a training session during which an individual does not experience the reinforcer in order to increase the reinforcer's effectiveness.